Recently in retailers Category

My previous blog posting observed how laid back fertiliser manufacturer Yara seemed to be about being jilted by Terra, its partner in GrowHow, in favour of a better merger off from a rival suitor.

The same cannot be said of dairy farmers involved in another partnership - the Arla Foods Milk Partnership - who have been similarly jilted by supermarket group Asda.

We've taken a number of calls from farmers in recent days, aggrieved by the short notice they have been given of the change, by the cursory nature of the letter they received, the lack of clarity about the criteria used and the fact that they are to receive 1p/litre less for their milk from 1 April.

Asda brushes this all off, saying it's just a review of its supplier base to establish a more consistent core pool of milk producers - something it does from time to time anyway...

Assemble a bunch of farmers and a bunch of politicians in a room together, and don't expect to find a whole lot of positivity.

That was certainly the case in the morning "political" session at the NFU's annual conference on Tuesday. Despite valiant attempts by president Peter Kendall to remain upbeat, it was not long before the delegates started castigating the invited MPs for their manifold failings.

From badgers, Brussels and battery cages, to red tape, retailers and the RPA, many of the industry's usual gripes got a good airing. One group of farmers from the south-west even stood to attention during DEFRA secretary Hilary Benn's speech, wearing black armbands with TB written on them, in protest at the government's policy on animal health.

It was therefore refreshing to move on to the afternoon "business" session of the conference where some much more positive messages were in evidence...

More good news has emerged this week from the IGD (Institute of Grocery Distribution), this time in the form of a survey looking at the consumer trend to buy more local food.

According to the report, 30% of shoppers have specifically purchased locally-produced food in the past month, compared with 15% just four years ago.

A similar number (31%) also said they would like more local products available to them, compared with 12% in 2006, as consumers look to improve freshness, reduce food miles, support farmers and keep jobs in the countryside.

The growing demand for local food does not come as a complete surprise, however - least of all to us at Farmers Weekly who were very much behind the push for local food with our Food Miles Campaign in 2006...

Sheep values are in the ascendancy with producers enjoying a larger slice of the pie, as the gap between farmgate prices and retail prices narrows.

Finished R3L carcases are pushing close to the 440p/kg peak achieved last spring and are 25% up on year-ago levels in response to tighter supplies.

The cull ewe trade is also booming, with older sheep regularly fetching over £100 a piece in the auction ring, and some of the largest, well-fleshed beasts even topping £150.

Not surprising then that, as with the beef trade last year, some farmers are tempted to sell their female sheep for slaughter, rather than retain them for breeding.

But this is all in stark contrast to the situation in the wool market, where values have slumped in the recession and collecting a fleece has become a loss-making activity...

The joy of internet shopping is a relatively recent addition to my life.

I think it coincided with getting married a little over a year ago. Since then I've noticed a marked increase in the number of packages arriving at the door, delivered by some smug looking courier requesting my signature.

Either that or I get home in the evening to find a card telling me the postman "was unable to deliver" a package and I end up having to drive five miles to the nearest Post Office to collect it. So much for convenience!

Fortunately we've not yet got into on-line grocery shopping. I say "fortunately" because, perversely, I actually quite enjoy my weekly trip to the supermarket. If nothing else, it counts as exercise!

But, it seems, it's only a matter of time before even that is done from the comfort of our front room...

As an enthusiastic skier, the sight of snow seldom fails to excite me. But sitting in another two-hour traffic jam on the way to work this morning, even I was starting to feel I'd seen enough.

Many farmers will have reached the same conclusion far quicker, as the cold snap takes a toll on their patience and their businesses.

Precise estimates have yet to emerge as to the overall cost of the "big freeze", though it is likely to run into the £ millions.

As we've been reporting on FWi this week, all manner of costs have gone up. Red diesel has firmed by about 5p/litre, with many farmers now having to pay over 50p/litre. The cost of heating oil has also risen as demand increases.

Animal fodder is getting costlier too, with auctioneers this week reporting a 20%-30% rise in the price of hay. Conventional bales have been touching £4 a bale for top quality meadow hay, with "Claas Quads" making over £50 a bale at Alexanders of Huntingdon's annual sale...

The arctic conditions gripping the country have caused havoc for many in the agricultural industry.

Farmers everywhere have had to contend with frozen water pipes, tractors than won't start, dwindling feed stocks and, in some cases, total power failure.

Auctioneers, too, have been forced to cancel their weekly livestock sales as roads have become impassable and buyers and sellers have been unable to make it to ringside.

And even agricultural journalists have, in many cases, been unable to get to their offices and been forced to work from home, (though, as the picture shows, I did give it my best shot!)

But it's not all bad news for business.

According to dairy co-op Milk Link, sales of UHT milk are booming. It has witnessed a 20% increase just this week as people have stocked up with long-life product to see them through the current cold snap...

2009 has been a year of ups and downs in the world of agri-business. Prices have reached record highs for some commodities, and dismal lows for others.

Some businesses have gone to the wall, while others have flourished.

But how much do you remember from the past 12 months? Are you a "Business Numpty" or a "Business Genius".

To test your knowledge, I have devised the following quiz:

When you attend a conference organised by English Farming and Food Partnerships, you expect to hear a lot about collaboration.

And yesterday's "Routes out of Recession" conference, held in the aesthetically pleasing Plaisterer's Hall in the City of London, was no exception.

DEFRA minister Lord Davies was first out of the blocks, stating that "strong working relations and collaborative relations in the food chain are vital". (It was about all he did say.)

EFFP chief executive Sion Roberts was more erudite, claiming that "the unifying principle that the visionaries all share is the drive to strengthen food chain relationships". (Good point, well made, Sion.)

Other speakers were quick to latch on to the theme. Jonathan Warburton described how his bread empire was built on trust and mutual reward along the chain, while NFU president Peter Kendall quoted the examples of the Red Tractor logo and designated supply chains in the dairy sector as examples of the industry working together to extract more value.

And Morrisons chief executive Marc Bolland spoke at length of his strong determination to work with all stakeholders, but especially farmers, to deliver "shared benefit for all"....

Another conference, another lesson in A level economics....

Last week it was the fundamentals of supply and demand that dominated the HGCA's annual outlook conference in London and provided fodder for some blog ramblings.

This week, courtesy of the IGD's "Leadership in Adversity" convention, it was that old mantra "the consumer is always right" that took me back to my first week at Sixth Form College.

The message was delivered, loud and clear, by most of the leading lights in the UK grocery trade attending the event. (And what a slick event it was too, with over 700 sharply suited executives rubbing shoulders in the ballroom of one of London's swankier hotels.)

Sir Terry Leahy, chief executive of Tesco, insisted the key to surviving the recession was to "follow the consumer". "Your entire focus should be on understanding what customers want, and reacting to deliver," he said. He should know....